OP&F Investment Notes, January 2017

OP&F approves commitments to Marlin
Equity V and Marlin Heritage II totaling $30 mAt its January
meeting, OP&F’s Board of Trustees approved the recommendation of staff and
private markets consultant TorreyCove to commit up to $24 million to Marlin
Equity V and up to $6 million to Marlin Heritage II. Marlin Management Co.
manages both of the funds which pursue the same investment strategy. Marlin
Equity V targets deals at the upper end of the domestic middle market while
Marlin Heritage II targets deals at the lower end of the same market

This
is the final commitment of the 2016 private markets plan year for OP&F, which
runs through Jan. 25.

Private Markets Investment Plan approved
for 2017The OP&F Board approved the 2017 Private Markets Investment
Plan, which targets aggregate capital commitments of $175 million to the private
markets asset class through January 31, 2018. The long-term goal for the private
markets asset class is 8.0 percent of the total portfolio.

As of Dec.
31, OP&F’s private markets portfolio was valued at $887 million, or 6.2 percent
of the total portfolio. In the 2016 investment plan year, approved and accepted
private markets commitments totaled $252.5 million ($17.5 million above its
target of $235 million).

3rd Quarter RE review
Townsend, OP&F’s real estate consultant, reported that returns for the third
quarter of 2016 showed a 2.1 percent return for the quarter, net of fees. The
OP&F real estate portfolio is valued at $1.5 billion as of Dec. 31, which is
10.7 percent of the total portfolio.